In light of its improving prospects, engineering and infrastructure firm Megawide Construction Corp. is increasing its maximum allowable dividend cash declaration policy to 50 percent from 30 percent of the previous year’s net income.

In a disclosure to the Philippine Stock Exchange, the firm said the expanded dividend policy was approved by its board of directors in their meeting last Sept. 19.

The move is meant to give the company more flexibility to allow its shareholders to benefit from the declaratio of higher cash dividends.

Earlier, Megawide reported an 81 percent surge in consolidated net income to ₱436 million in the first six months of the year, 81 percent of full-year 2024 net income.

“Based on our performance in the first six months of the year, we are on track to outpace our net income from the previous year,” Megawide Chairman and CEO Edgar Saavedra said.

He added, “This is also partly driven by the increasing contribution from our real estate business, which is steadily emerging as a new growth driver.

“Other business segments are expected to complement our consolidated overall performance as we replenish our order book for EPC and Precast and Construction Solutions (PCS) from both external and internal clients.”

Revenue from real estate operations amounted to ₱1.1 billion – more than three times from the comparative period in 2024 – coming from ongoing projects.

With healthy sales at ₱1.7 billion for the first half – 64 percent higher year on year – this brought unbooked revenues to a healthy level of ₱8.8 billion.

As of end June 2025, Megawide’s construction order book ended at ₱37.7 billion, with new contracts amounting to ₱2.0 billion. Megawide is currently bidding for high-value projects estimated at ₱20 billion, which will shore up its year-end order book to ₱50 billion.

Megawide’s earnings are also seen to get a boost after parent company Citicore Holdings Investment, Inc. (CHII) and sister company Citicore Power Inc. (CPI) paid back ₱9.4 billion for advances made by the engineering firm in 2016.

Based on the agreements, the transaction will have two components – upfront payment of cash amounting to ₱3.5 billion and the balance of ₱5.9 billion via assignment of CREC shares to Megawide.

“The cash inflow will be used directly to pay down a portion of our outstanding debt, while the ownership of CREC shares will offer immediate earnings accretion and serve as currency for future value realization,” said Edgar Saavedra.